Trump Proposes Tariffs on Brazil Over Trade Issues

The Trump administration has proposed a 25% tariff on many imports from Brazil, citing unfair trade practices. These include issues related to digital trade and illegal deforestation, according to Jamieson Greer of the U.S. Trade Representative’s office.

The tariffs, under Section 301 of U.S. trade law, target areas like electronic payments, intellectual property rights, and ethanol market access. However, items such as beef, coffee, rare earth metals, and aircraft parts are exempt from these new taxes.

The USTR claims Brazil’s practices harm U.S. trade interests and violate international agreements. The proposed tariffs aim to address long-standing concerns with Brazil’s policies, though they will partially replace a 50% tariff Trump imposed last year as punishment for Brazil prosecuting his ally Jair Bolsonaro.

In February, the U.S. Supreme Court ruled against Trump’s previous tariffs. Greer said the investigation was launched to resolve significant differences between the two countries over trade practices.

The USTR is inviting public comments on the proposed tariffs until July 1 and has scheduled a hearing for July 6. The agency must take action by July 15 under Section 301 rules. Other ongoing investigations include probes into China’s industrial capacity and forced labor practices in 60 countries.

Additionally, the USTR announced a new investigation into Vietnam’s intellectual property practices on May 29. Products subject to national security-related tariffs, such as steel and aluminum, are not affected by the proposed 25% tariff on Brazil. Exemptions include fruits, nuts, crude oil, pharmaceuticals, and fertilizers.